First oil from EnQuest’s Alma/Galia development in the North Sea is now not expected until next year, the firm said today (August 13).
First production from the field, due to be developed using the EnQuest Producer floating production, storage and offloading vessel, had been expected in H2 this year.
Image: The EnQuest Producer at OGN Group's Hadrian Yard. Image from OGN Group.
EnQuest said today that, while significant progress had been made on the FPSO, at OGN Group’s Hadrian Yard in Newcastle, England, sailaway was now weather dependent and would happen in Spring 2015, with first oil in the middle of the year. The subsea infrastructure is already in place, with risers and mooring systems pre-installed.
Delays on FPSOs have also beset other operators in the North Sea. Last week Lundin’s CEO vented his frustration at delays to work on the Haewene Brim FPSO, which had meant first oil on its Brynhild field, due to tie-in to the Haewene Brim, had been delayed. Read more: Lundin frustrated at Brynhild delay Ithaca Energy has also seen its Greater Stella Area development project set back due to delays on the FPF1 floating unit.
“The FPSO is substantially complete and commissioning has started,” said EnQuest. “Three wells have been completed and a fourth is in the process of being completed for production.”
Despite the set back, Enquest’s production increased 17.0% in H1 2014, to 25,292Boe/d, as a result of strong reservoir performance and high production efficiency. In fact, EnQuest CEO Amjad Bseisu said EnQuest was also in the top quartile in Oil & Gas UK’s latest production efficiency rankings. Bseisu said: “Production efficiency has been an important driver of the strong performance from our existing assets in H1 2014 and we see this continuing in the second half of the year.”
As well as the Alma/Galia development, EnQuest is developing the UK North Sea heavy oil Kraken field. The firm said work on the development is proceeding on time and on budget and progress is continuing on the host vessel, an FPSO conversion, in Singapore. The Kraken West appraisal well Tyrone is due to be drilled in H2 2014.
EnQuest also recently submitted a development plan for Ythan, on the Don North East license, awarded out of round earlier this year. Successful exploration and appraisal wells were also drilled at Cairngorm and Avalon. In the North Sea, EnQuest also completed the acquisition of the Greater Kittiwake area hub (GKA).
EnQuest is also developing a Malaysian hub after buying PM8/Seligi offshore Malaysia at the end of June, and being awarded the Tangjong Baram field development. A transition of the operatorship of PM8/Seligi from ExxonMobil to EnQuest is underway.
Bseisu said: “EnQuest will soon have six producing hubs, and over 15 producing fields, giving diversity to our portfolio.
“With our UK North Sea activities set for substantial growth from our new hubs, we have been complementing our UK business by establishing EnQuest in South East Asia, through the Tanjong Baram field development and the acquisition of PM8/Seligi. Seligi was once the largest oil field in Peninsular Malaysia and we are evaluating the potential from infill drilling and workovers at PM8/Seligi.”